81 FR 11340 - Women-Owned Small Business Federal Contract Program; Identification of Eligible Industries

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 81, Issue 42 (March 3, 2016)

In order to carry out the Women-Owned Small Business Federal Contract Program (WOSB Program), the U.S. Small Business Administration (SBA) was required by section 825 of the National Defense Authorization Act of 2015 to conduct a new study identifying the industries in which women-owned small businesses are underrepresented in Federal contracting and to report to Congress on the results of that study by January 2, 2016. In accordance with this statutory mandate, SBA has provided this report to Congress and with this notice, notifies the public of the results of this study and identifies the industries designated by SBA as eligible for the WOSB Program.

[Federal Register Volume 81, Number 42 (Thursday, March 3, 2016)]
[Notices]
[Pages 11340-11343]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04762]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION


Women-Owned Small Business Federal Contract Program; 
Identification of Eligible Industries

AGENCY: Small Business Administration.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In order to carry out the Women-Owned Small Business Federal 
Contract Program (WOSB Program), the U.S. Small Business Administration 
(SBA) was required by section 825 of the National Defense Authorization 
Act of 2015 to conduct a new study identifying the industries in which 
women-owned small businesses are underrepresented in Federal 
contracting and to report to Congress on the results of that study by 
January 2, 2016. In accordance with this statutory mandate, SBA has 
provided this report to Congress and with this notice, notifies the 
public of the results of this study and identifies the industries 
designated by SBA as eligible for the WOSB Program.

DATES: This notice is effective March 3, 2016. The designations of 
industries contained in this notice apply to all solicitations issued 
on or after the effective date.

FOR FURTHER INFORMATION CONTACT: Mr. Leo Sanchez, Office of Government 
Contracting, U.S. Small Business Administration, 409 Third Street SW., 
Washington, DC 20416; (202) 619-1658; [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Under section 8(m) of the Small Business Act, 15 U.S.C. 637(m), SBA 
is responsible for implementing and administering the WOSB Program, 
which went into effect on February 4, 2011. The purpose of the WOSB 
Program is to ensure that women-owned small businesses (WOSBs) have an 
equal opportunity to participate in Federal contracting and to help 
attain the Federal government's goal of awarding five percent of its 
prime contract dollars to WOSBs. The WOSB Program authorizes Federal 
contracting officers to restrict competition for an acquisition to 
WOSBs if there is a reasonable expectation that at least two WOSBs will 
submit offers that meet the requirements of the acquisition at a fair 
and reasonable price and if the acquisition is for a good or service 
assigned a North American Industry Classification System (NAICS) code 
in which SBA has determined that WOSBs are ``substantially 
underrepresented.'' The WOSB Program also authorizes contracting 
officers to award a sole source contract assigned such a NAICS code to 
a WOSB if only one WOSB can be identified that can perform the contract 
at a fair and reasonable price. In addition, Economically Disadvantaged 
Women-Owned Small Businesses (EDWOSBs) can likewise receive set-asides 
and sole source awards similar to those described above for WOSBs, and 
in a larger set of industries where SBA has determined that WOSBs are 
``underrepresented'' but not substantially so.
    In order to identify the industries eligible for set-asides under 
the WOSB Program, the Small Business Act required the SBA Administrator 
to conduct a study to identify those industries in which small business 
concerns owned and controlled by women are underrepresented in Federal 
contracting. 15 U.S.C. 637(m)(4). SBA awarded a contract to the 
Kauffman-RAND Institute for Entrepreneurship Public Policy (RAND) to 
complete a study of the underrepresentation of WOSBs in Federal prime 
contracts by industry code. RAND published the study in April 2007.\1\ 
Prior to the

[[Page 11341]]

effective date of this notice, SBA used the results of the RAND study 
to designate 83 four-digit NAICS industry groups as either 
underrepresented or substantially underrepresented by WOSBs. SBA 
published the designated NAICS codes on the WOSB Program's Web page on 
SBA's Web site, at www.sba.gov/wosb.
---------------------------------------------------------------------------

    \1\ The RAND study is available to the public at http://www.RAND.org/pubs/technical_reports/TR442.
---------------------------------------------------------------------------

    In 2014, Congress amended the Small Business Act to require SBA to 
submit a report to Congress reflecting the results of a new study by 
January 2, 2016, and then continue to conduct a new study every five 
years. Public Law 113-291 825(c) (Dec. 19, 2014). In response to this 
statutory mandate, SBA asked the Office of the Chief Economist (OCE) of 
the U.S. Department of Commerce for assistance in conducting a new 
study on the WOSB Program, which would analyze data to help SBA 
determine those NAICS codes in which WOSBs are underrepresented and 
substantially underrepresented in Federal contracting. OCE looked at 
whether, holding constant various factors that might influence the 
award of a contract, the odds of winning Federal prime contracts by 
firms that were owned by women were greater or less than the odds of 
winning contracts by otherwise similar businesses.

II. Overview of Study and Results

    In its analysis, OCE controlled for the size and age of the firm; 
its membership in various categories of firms for which the Federal 
government has government-wide prime contracting goals; its legal form 
of organization; its level of government security clearance; and its 
Federal prime contracting past performance ratings. OCE also looked at 
whether women-owned businesses typically have significantly different 
experiences in winning contracts depending on their industry. OCE 
performed this analysis at the four-digit NAICS industry group level. 
OCE included each firm in its sample in an industry analysis if the 
firm had registered as being able to perform work in that industry or 
if the firm had won a contract assigned to that industry.
    OCE found that women-owned businesses were less likely to win 
Federal contracts in 254 of the 304 industries included in the study.
    In 109 out of the 304 industries, OCE found that women-owned 
businesses have statistically significant lower odds of winning Federal 
contracts than otherwise similar non-women-owned businesses at the 95% 
confidence level. SBA has determined that the finding by OCE of a 
statistically significant lower likelihood of winning contracts 
demonstrates that WOSBs are substantially underrepresented in these 109 
NAICS codes. However, of these industries, 17 are in sectors 42 and 44-
45, which are not applicable to Federal contracts under SBA's 
regulations. 13 CFR 121.201. These 17 industry group NAICS codes are 
set forth in Table 1, Industries Part of Sectors 42 and 44-45, Not 
Applicable to Federal Contracts Under SBA Regulations.

                       Table 1--Industries Part of Sectors 42 and 44-45, Not Applicable to Federal Contracts Under SBA Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
              NAICS code                                                            NAICS U.S. industry title
--------------------------------------------------------------------------------------------------------------------------------------------------------
4231..................................  Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers.
4233..................................  Lumber and Other Construction Materials Merchant Wholesalers.
4234..................................  Professional and Commercial Equipment and Supplies Merchant Wholesalers.
4237..................................  Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers.
4238..................................  Machinery, Equipment, and Supplies Merchant Wholesalers.
4239..................................  Miscellaneous Durable Goods Merchant Wholesalers.
4242..................................  Drugs and Druggists' Sundries Merchant Wholesalers.
4246..................................  Chemical and Allied Products Merchant Wholesalers.
4249..................................  Miscellaneous Nondurable Goods Merchant Wholesalers.
4251..................................  Wholesale Electronic Markets and Agents and Brokers.
4411..................................  Automobile Dealers.
4421..................................  Furniture Stores.
4422..................................  Home Furnishings Stores.
4441..................................  Building Material and Supplies Dealers.
4442..................................  Lawn and Garden Equipment and Supplies Stores.
4512..................................  Book, Periodical, and Music Stores.
4543..................................  Direct Selling Establishments.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Since the industry groups above cannot be used to classify Federal 
contracts, SBA has excluded them from the list of industries designated 
as substantially underrepresented.
    In addition, OCE found that in 145 out of the 304 industries, the 
odds of women-owned businesses winning contracts were lower than those 
of otherwise similar non-women-owned businesses, but there was not a 
statistically significant difference between the odds of winning for 
the two groups. Although there was not a finding of statistical 
significance for these industries, 21 of them were previously found by 
the RAND study to be industries in which WOSBs are underrepresented or 
substantially underrepresented. Thus, SBA has information showing 
historical underrepresentation of women-owned businesses in these 21 
industries, which is consistent with the OCE finding that women-owned 
businesses are less likely to win contracts. As a result, SBA finds 
that it possesses sufficient data to determine that WOSBs are 
underrepresented in these 21 industries. SBA also believes that this 
decision fulfills the intent of the Small Business Act, which 
demonstrates the intent that the designations of eligible industries be 
based on at least five years of data.
    The full OCE study is available on SBA's Web site at www.sba.gov/wosb.

III. Eligible Industries

    Based on the above, SBA finds a total of 113 industry groups 
eligible for Federal contracting under the WOSB Program. This includes 
21 4-digit NAICS industry groups in which WOSBs are underrepresented 
(meaning contracting officers can make EDWOSB set-aside and sole source 
awards in these industries) and 92 4-digit NAICS industry groups in 
which WOSBs are substantially underrepresented (meaning contracting 
officers can make WOSB set-aside and sole source awards in these 
industries). EDWOSB concerns are eligible to be considered for both 
WOSB and EDWOSB set-aside and sole

[[Page 11342]]

source awards for the 113 NAICS industry groups.
    The 21 NAICS codes in which WOSBs are underrepresented are set 
forth in Table 2, NAICS Codes in which WOSBs are Underrepresented.

        Table 2--NAICS Codes in Which WOSBs Are Underrepresented
------------------------------------------------------------------------
        NAICS code                   NAICS U.S. industry title
------------------------------------------------------------------------
3152.....................  Cut and Sew Apparel Manufacturing.
3219.....................  Other Wood Product Manufacturing.
3259.....................  Other Chemical Product and Preparation
                            Manufacturing.
3333.....................  Commercial and Service Industry Machinery
                            Manufacturing.
3342.....................  Communications Equipment Manufacturing.
3353.....................  Electrical Equipment Manufacturing.
3359.....................  Other Electrical Equipment and Component
                            Manufacturing.
3372.....................  Office Furniture (including Fixtures)
                            Manufacturing.
4841.....................  General Freight Trucking.
4885.....................  Freight Transportation Arrangement.
4889.....................  Other Support Activities for Transportation.
5171.....................  Wired Telecommunications Carriers.
5311.....................  Lessors of Real Estate.
5414.....................  Specialized Design Services.
5611.....................  Office Administrative Services.
5614.....................  Business Support Services.
5621.....................  Waste Collection.
6115.....................  Technical and Trade Schools.
6243.....................  Vocational Rehabilitation Services.
7223.....................  Special Food Services.
8114.....................  Personal and Household Goods Repair and
                            Maintenance.
------------------------------------------------------------------------

    The 92 NAICS codes in which WOSBs are substantially 
underrepresented are set forth in Table 3, NAICS Codes in which WOSBs 
are Substantially Underrepresented.

 Table 3--NAICS Codes in Which WOSBs Are Substantially Underrepresented
------------------------------------------------------------------------
        NAICS code                   NAICS U.S. industry title
------------------------------------------------------------------------
1153.....................  Support Activities for Forestry.
2213.....................  Water, Sewage and Other Systems.
2361.....................  Residential Building Construction.
2362.....................  Nonresidential Building Construction.
2371.....................  Utility System Construction.
2373.....................  Highway, Street, and Bridge Construction.
2379.....................  Other Heavy and Civil Engineering
                            Construction.
2381.....................  Foundation, Structure, and Building Exterior
                            Contractors.
2382.....................  Building Equipment Contractors.
2383.....................  Building Finishing Contractors.
2389.....................  Other Specialty Trade Contractors.
3114.....................  Fruit and Vegetable Preserving and Specialty
                            Food Manufacturing.
3118.....................  Bakeries and Tortilla Manufacturing.
3141.....................  Textile Furnishings Mills.
3149.....................  Other Textile Product Mills.
3231.....................  Printing and Related Support Activities.
3241.....................  Petroleum and Coal Products Manufacturing.
3323.....................  Architectural and Structural Metals
                            Manufacturing.
3324.....................  Boiler, Tank, and Shipping Container
                            Manufacturing.
3325.....................  Hardware Manufacturing.
3328.....................  Coating, Engraving, Heat Treating, and Allied
                            Activities.
3329.....................  Other Fabricated Metal Product Manufacturing.
3331.....................  Agriculture, Construction, and Mining
                            Machinery Manufacturing.
3334.....................  Ventilation, Heating, Air-Conditioning, and
                            Commercial Refrigeration Equipment
                            Manufacturing.
3335.....................  Metalworking Machinery Manufacturing.
3339.....................  Other General Purpose Machinery
                            Manufacturing.
3345.....................  Navigational, Measuring, Electromedical, and
                            Control Instruments Manufacturing.
3346.....................  Manufacturing and Reproducing Magnetic and
                            Optical Media.
3363.....................  Motor Vehicle Parts Manufacturing.
3369.....................  Other Transportation Equipment Manufacturing.
3371.....................  Household and Institutional Furniture and
                            Kitchen Cabinet Manufacturing.
3391.....................  Medical Equipment and Supplies Manufacturing.
3399.....................  Other Miscellaneous Manufacturing.
4831.....................  Deep Sea, Coastal, and Great Lakes Water
                            Transportation.
4842.....................  Specialized Freight Trucking.
4884.....................  Support Activities for Road Transportation.
4931.....................  Warehousing and Storage.

[[Page 11343]]

 
5111.....................  Newspaper, Periodical, Book, and Directory
                            Publishers.
5112.....................  Software Publishers.
5121.....................  Motion Picture and Video Industries.
5122.....................  Sound Recording Industries.
5151.....................  Radio and Television Broadcasting.
5172.....................  Wireless Telecommunications Carriers (except
                            Satellite).
5174.....................  Satellite Telecommunications.
5179.....................  Other Telecommunications.
5182.....................  Data Processing, Hosting, and Related
                            Services.
5191.....................  Other Information Services.
5241.....................  Insurance Carriers.
5242.....................  Agencies, Brokerages, and Other Insurance
                            Related Activities.
5321.....................  Automotive Equipment Rental and Leasing.
5324.....................  Commercial and Industrial Machinery and
                            Equipment Rental and Leasing.
5411.....................  Legal Services.
5412.....................  Accounting, Tax Preparation, Bookkeeping, and
                            Payroll Services.
5413.....................  Architectural, Engineering, and Related
                            Services.
5415.....................  Computer Systems Design and Related Services.
5416.....................  Management, Scientific, and Technical
                            Consulting Services.
5417.....................  Scientific Research and Development Services.
5418.....................  Advertising, Public Relations, and Related
                            Services.
5419.....................  Other Professional, Scientific, and Technical
                            Services.
5612.....................  Facilities Support Services.
5615.....................  Travel Arrangement and Reservation Services.
5616.....................  Investigation and Security Services.
5617.....................  Services to Buildings and Dwellings.
5619.....................  Other Support Services.
5622.....................  Waste Treatment and Disposal.
5629.....................  Remediation and Other Waste Management
                            Services.
6113.....................  Colleges, Universities, and Professional
                            Schools.
6114.....................  Business Schools and Computer and Management
                            Training.
6116.....................  Other Schools and Instruction.
6117.....................  Educational Support Services.
6211.....................  Offices of Physicians.
6214.....................  Outpatient Care Centers.
6215.....................  Medical and Diagnostic Laboratories.
6219.....................  Other Ambulatory Health Care Services.
6221.....................  General Medical and Surgical Hospitals.
6231.....................  Nursing Care Facilities.
6242.....................  Community Food and Housing, and Emergency and
                            Other Relief Services.
7112.....................  Spectator Sports.
7113.....................  Promoters of Performing Arts, Sports, and
                            Similar Events.
7114.....................  Agents and Managers for Artists, Athletes,
                            Entertainers, and Other Public Figures.
7115.....................  Independent Artists, Writers, and Performers.
7211.....................  Traveler Accommodation.
7212.....................  RV (Recreational Vehicle) Parks and
                            Recreational Camps.
7225.....................  Restaurants and Other Eating Places.
8111.....................  Automotive Repair and Maintenance.
8112.....................  Electronic and Precision Equipment Repair and
                            Maintenance.
8113.....................  Commercial and Industrial Machinery and
                            Equipment (except Automotive and Electronic)
                            Repair and Maintenance.
8121.....................  Personal Care Services.
8123.....................  Drycleaning and Laundry Services.
8129.....................  Other Personal Services.
8131.....................  Religious Organizations.
8139.....................  Business, Professional, Labor, Political, and
                            Similar Organizations.
------------------------------------------------------------------------

    SBA has posted the list of designated NAICS codes on its Web site 
at www.sba.gov/wosb and they are effective as set forth in this notice.

    Dated: February 29, 2016.
A. John Shoraka,
Associate Administrator, Government Contracting and Business 
Development.
[FR Doc. 2016-04762 Filed 3-2-16; 8:45 am]
 BILLING CODE 8025-01-P